KakaoBank, an internet-only financial institution in South Korea, has made a strategic funding in Naivy, a fintech startup specializing in music advertising and marketing companies.
The financial institution acquired a 14.99% stake in Naivy for KRW 908 million (approx. USD $680,000), The Korea Instances reported Monday (August 20), citing an organization spokesperson.
KakaoBank is a subsidiary of tech big Kakao Corp. Final yr, Kakao took a 39.9% stake in Ok-pop company SM Leisure. It additionally controls Melon, South Korea’s largest music streaming service.
“We determined to put money into Naivy to assist fintech startups with excellent know-how,” the Kakaobank spokesperson was quoted by the Korea Instances as saying.
Naivy operates the PLAM app, which presents customers money incentives for listening to music. This strategy goals to advertise artists and their songs whereas offering a rewarding expertise for customers.
Information of the acquisition got here a couple of week after KakaoBank launched a brand new service the place customers can “hearken to music and earn money” inside the KakaoBank app. The service is operated in collaboration with Naivy, the financial institution stated in an announcement on its web site.
Customers will be capable of entry the PLAM app instantly inside the KakaoBank app. After listening to songs and leaving quick opinions, they may obtain KRW 10 gained (USD $0.007) or KRW 20 ($0.014) per track instantly into their KakaoBank account. This integration eliminates the necessity for customers to obtain extra apps.
“We determined to put money into Naivy to assist fintech startups with excellent know-how.”
Kakaobank Spokesperson
In accordance with native media, along with KakaoBank, Naivy additionally attracted funding from leisure firm RBW, a report label, expertise company, music manufacturing agency, occasion supervisor, live performance producer, and music publishing home based mostly in Seoul. It’s residence to artists together with Mamamoo, KARA and B1A4.
KakaoBank has a observe report of investing in fintech startups and integratingtheir companies into its banking app, The Korea Instances stated. In January 2023, the financial institution purchased a 14.99% stake in Nulleesoft, an organization that operates an algorithmic tax reporting service. By integrating this service into its app, the financial institution has been capable of provide clients a method to handle their tax obligations.
“We’ll proceed working to create a handy and safe monetary service atmosphere based mostly on mutual progress,” a KakaoBank official was quoted by the newswire as saying.
Final month, South Korean authorities arrested Kakao Corp.’s billionaire founder, Kim Beom-su, on allegations of manipulating inventory costs throughout the firm’s acquisition of a stake in SM Leisure final yr.
The arrest threatens the standing of Kakao as the biggest shareholder in KakaoBank, as Korean legislation restricts those that have been convicted of a monetary crime from holding greater than a 10% stake in a financial institution, Reuters reported on the time.
Kakao at the moment holds a 27.17% controlling stake in KakaoBank, The Korea Instances stated. The corporate may reportedly be ordered to chop its stake to 10%.
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